USD/JPY Has Stopped Flying, Price Will Crash This Week?


 The bullish pattern displayed on the chart of the USD/JPY currency pair is seen to have started to falter at the end of last week.

Expectations for the price to reach the 139.00 level were not fulfilled as the price started to flatten and gave an early sign that the previous bullish trend was ending.

Previously, the US dollar was seen to maintain its strengthening over the past week with several factors being examined in favor of the US dollar.

However, last Friday the focus was on the speech by Federal Reserve (Fed) Chairman Jerome Powell who attended a discussion event in Washington.

In his statement, the current situation does not require the central bank to raise interest rates after this.

This has dashed expectations for continued policy tightening based on views expressed by several Fed Presidents last week.

Thus, the US dollar is seen to start retreating from its strengthening and shrinking at the close of trading in the last session.

If you also examine the USD/JPY chart, the price drop last Friday also shows the price starting to move below the Moving Average 50 (MA50) line in the 1-hour time frame as an early signal of a change in the bearish trend.

The price hovering around 138.00 at the opening of the week is likely to drop down to track the 137.00 focus zone which will act as a temporary support zone.

If the zone succeeds in rebounding the price, the MA50 barrier will be tested again and if it is broken then the increase will continue to a higher level.

Exceeding the height reached last week will expect the price to test the resistance zone at 139.300.

However, if the price falls lower after breaking through the 137.00 zone, the price can reach up to the 135.00 level, which has been a price focus area for the past few weeks.

A lower drop would expect the price to reach the support zone at 133,800.